Despite a weaker dollar and lower global prices for many raw materials, Israeli shoppers are still paying nearly the same, and in some cases more, at the supermarket. The issue was debated Wednesday in the Knesset Economics Committee, where lawmakers pressed the Finance Ministry and the Competition Authority to present a real plan to increase competition in food retail and bring prices down.
The discussion was initiated by MK Moshe Passal after new research from the Knesset’s Research and Information Center showed a growing gap between Israel and other markets. Between August 2025 and April 2026, food prices in the European Union fell 1.1%, while in Israel they rose 0.2%. Over a longer period, from the start of 2022 to the end of 2025, global food commodity prices dropped about 3.6%, but consumer food prices in Israel climbed 18.8%.
The report described the pattern as "rises like rockets and falls like feathers," meaning prices quickly reflect higher costs but barely respond when costs fall. Lobby 99 said consumers are not benefiting from global declines in coffee, sugar and cocoa, which fell about 22%, 12% and 60% respectively over the past year, while shelf prices for coffee and chocolate went up. It also cited extreme market concentration, saying that in 30 of 38 food categories in Israel, three companies control more than 70% of the market.
Industry and trade representatives rejected the idea that the dollar explains most local costs, pointing instead to steep increases in labor, National Insurance, electricity, water, rent and regulation. According to the figures presented, National Insurance payments rose 27%, the minimum wage 10%, electricity tariffs 62% and water costs 53%. The Finance Ministry said exchange-rate changes should eventually reach consumers, but admitted the process takes time.
MK Yasmin Fridman challenged that explanation, asking, "How much longer do we need to wait?" The Competition Authority said it had imposed fines totaling hundreds of millions of shekels and blocked merger deals in recent years, but acknowledged limits on its enforcement tools. Passal ended by asking the Finance Ministry, Economy Ministry and Competition Authority to return with concrete steps to remove barriers and increase competition, as public pressure grows for real relief at checkout.
